Question

National Park Tours Co. is a travel agency.
The nine transactions recorded by National Park Tours during May 2019, its first month of operations, are indicated in the following T accounts:
Cash:
(1) 75,000 (2) 900
(7) 8,150 (3) 1,600
4) 6,280
(6) 2,700
(9) 2,500
Equipment:
3) 8,000
Beth Worley, Drawing:
(9) 2,500
Accounts Receivable:
(5) 12,300 (7) 8,150
Accounts Payable:
(6) 2,700 (3) 6,400
Fees Earned:
(5) 12,300
Supplies:
(2) 900 (8) 660
Beth Worley, Capital:
1) 75,000
Operating Expenses:
(4) 6,280
(8) 660
Required:
a. Prepare an unadjusted trial balance, listing the accounts in their proper order.
Place the amounts in the proper columns.
b. Based upon the unadjusted trial balance, determine the net income or net loss.

Answer 1

Answer: The answer is provided below

Explanation:

a. The unadjusted trial balance has been attached.

b. The net income is calculated as sales minus the expenses. Regarding the question, after the trial balance has been prepared, the net income is the value of the company's operating expenses which is then subtracted from the fees that the company earned. Therefore, the net income will be:= 12300-6940 = 5360